ENACH

This page gives you and overview of Decentro's recurring collection capabilities through the ENACH stack.

Overview

Decentro helps platforms collect payments periodically, be it daily, weekly, monthly, or even yearly, to reduce dependency on human intervention through the ENACH stack. It also helps platforms mitigate risks due to a payer defaulting on a payment, etc., and reduce dependency on the payer for transferring or approving funds transfer for each transaction.

Decentro powers both capabilities on its own RBI-approved PA Escrow account and directly on the platform's bank account as a technology partner.

Decentro's mandates stack powers the use cases below for platforms to leverage.

  • EMI repayments: This allows lenders like LSPs, NBFCs, SFBs, and even banks to leverage the stack to collect EMIs from borrowers through the ENACH stack.
  • Insurance premiums: This allows platforms like insurtechs, life, and general insurers to leverage the stack to collect premiums from borrowers through the ENACH stack.
  • Investment use cases: This allows investment platforms like Fintechs, RIAs, and even AMCs to leverage the stack to collect EMIs from borrowers through the ENACH stack.
  • Subscription use-cases: this allows platforms, like SME aggregators, B2B marketplace platforms, ECOM, and even offline platforms, to leverage the stack to collect EMIs from borrowers through the ENACH stack.

Glossary of Terms

Below are the commonly used terms/words in the context of Decentro's ENACH stack.

PhraseExplanation
NACHThe platform operated by NPCI is used to facilitate recurring payments
ENACHThe electronic version of the NACH platform
Physical NACHThe physical form factor which requires the payer to fill out a mandate registration form
PlatformThe entity that integrates or has a direct business relationship with Decentro
Payee/MerchantThe entity/merchant who is collecting funds from the payer. This can be the platform itself or a 3rd party
PayerThe entity (individual/business) who is paying the payee for services like loan, insurance, etc
RegistrationThe leg of the mandate that requires the payer to set a mandate with authorization
Presentation/ ExecutionThe leg of the mandate where the payee debits the funds from the payer's bank account
Utility CodeA unique identifier for a merchant registered with NPCI that is used to collect funds through the NACH platform
Destination BankThe bank where the payer holds a bank account from where the funds are debited
Sponsor BankThe bank with whom Decentro partners with to receive the funds debited

Flow

Decentro's mandates stack has largely 3 legs or steps in the flow.

  • Mandate Registration: This step involves the payer setting up a mandate on the ENACH or UPI stack and consenting to the mandate terms like amount, tenure, frequency, etc. Note that this doesn't debit the funds from the payer's account.
  • Pre-debit notification: This step involves the payee/platform letting Decentro and the payer know the presentation date and amount well before the debit date. Note that this doesn't debit the funds from the payer's account.
  • Mandate Execution: This step involves the payee/platform letting Decentro know the amount to be debited on a specific date from the registered account. At this stage, the payer's bank account is debited for the amount presented for execution.

Note: ENACH supports registration and presentation up to 1,00,00,000 INR across frequencies.

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Note

Please note that not all commercial banks support API-based E-mandates. All the supported banks are available in the Supported Banks API. The platform can use this API to check if the customer's bank supports ENACH.

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Coming Soon

Aadhaar based E-mandates

Prerequisites

Below are the prerequisites expected of the platform before going live.

  • The platform or the entity under the platform has a utility code registered with NPCI.
  • If the platform or the entity under the platform lacks a utility code, Decentro facilitates its creation.
  • The platform configures the required endpoints at its end to receive the callbacks from Decentro for registration and/or execution.

Journey

Below is the flow recommended by Decentro for leveraging up the ENACH stack.

  • Decentro helps the platform receive its utility code by liaising with NPCI and its sponsor bank. This is an offline process, and Decentro configures it at its end.
  • The platform shares endpoints that can be configured at Decentro's end to trigger callbacks for registration and presentation. This can be shared with Decentro at [email protected].
  • The platform asks for the payer's bank account on its page/app and checks if it is supported on ENACH using the ENACH Supported Banks API.
  • Alternatively, the platform can call Decentro's Mandate Registration API directly, and Decentro will respond if ENACH supports the bank.
  • The platform initiates the registration flow bypassing the payer's bank account details using the Mandate Registration API.
  • The platform shares the link shared by Decentro with the payer on its app or website, where the payer is redirected to NPCI and completes the mandate request.
  • After completing the mandate registration process, the payer is redirected to the URL the platform shares when onboarding.
  • Decentro triggers the ENACH registration Callback to the platform's endpoint with the registration status once the payer has completed the steps.
  • The platform can also check the registration status using the Mandate Status API using the Decentro transaction ID received from the registration API.
  • The platform initiates the pre-debit notification to the payer using standard communication modes, such as SMS and/or Email, to ensure compliance with the guidelines.
  • The platform initiates the debit request by triggering the Mandate Execution API, which will be passed to the destination bank for actual debit.
  • The actual debit happens from the payer's bank account if the account has sufficient balance and is active or there are no issues with the said account.
  • Decentro triggers the ENACH Execution Callback API to the platform's configured endpoint once it receives the presentation status from its bank partner.
  • The platform can also check the status of the mandate's presentation using the Get Mandate Execution Status API.

Settlement Flow

Decentro settles the funds received from its bank partner (Sponsor Bank) as per the agreed business proposal. Decentro has the below capabilities from a settlement perspective.

  • Settlement to a single bank account of the platform/merchant
  • Settlement to multiple bank accounts of the platform/merchants basis pre-defined logic

Transaction Limits

Decentro's ENACH platform supports transaction limits for registration/presentation, as below.

  • Debit Card based non-security mandate: 1 CR
  • Netbanking-based non-security mandate: 1 CR
  • Aadhaar-based non-security mandate: 1 CR
  • General security mandate: 1 CR

Supported Banks

The ENACH Supported Banks API can fetch the updated list of Banks and Methods NPCI supports for E-NACH. Using this API, you can check if your customer's bank supports API-based E-mandates.

Here is the list of banks and the modes supported on the ENACH platform by registered banks.

If you have any questions, please refer to ENACH FAQs. If you have any additional queries, please email us at [email protected].

Decentro's ENACH-related API reference can be found here.